Unemployment in an Interdependent World

Table A3:

Robustness Checks:

Semi-log specification an

different IV strategy

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Dep.var.

ln u

ln u

u

u

u

u

ln u

u

OLS

IV

IV

OLS

OLS

IV

OLS

OLS

Instruments / Proxy

^bt^*-1^{, pmr}t^*-1

b*.pmr*

*
^ut^*-1

^bt^*-1^{, pmr}t^*-1

ln u^*, u*

0.018

0.022^c

0.080^a

0.075^a

0.086^a

0.087^a

(0.013)

(0.013)

(0.028)

(0.027)

(0.030)

(0.032)

b^*

0.002^a

0.009^a

(0.001)

(0.003)

b

0.017^a

0.018^a

0.085^a

0.099^a

0.078^a

0.095^a

0.018^a

0.079^a

(0.003)

(0.003)

(0.018)

(0.020)

(0.020)

(0.019)

(0.003)

(0.020)

PMR

0.184^a

0.198^a

0.875^a

0.939^a

0.843^a

0.920^a

0.182^a

0.821^a

(0.037)

(0.033)

(0.196)

(0.215)

(0.210)

(0.203)

(0.036)

(0.206)

Union density

-0.003

-0.003

-0.004

-0.003

-0.005

-0.004

-0.003

-0.005

(0.003)

(0.003)

(0.022)

(0.023)

(0.023)

(0.022)

(0.003)

(0.023)

High corporatism

-0.129^b

-0.150^a

-1.619^a

-1.865^a

-1.527^a

-1.781^a

-0.124^b

-1.525^a

(0.057)

(0.056)

(0.390)

(0.427)

(0.415)

(0.390)

(0.057)

(0.415)

EPL

-0.012

0.007

-0.413

-0.300

-0.458

-0.326

-0.020

-0.461

(0.054)

(0.049)

(0.342)

(0.375)

(0.366)

(0.351)

(0.056)

(0.371)

EU dummy

0.724^c

0.438

0.732^c

(0.383)

(0.355)

(0.383)

gap

-0.091^a

-0.090^a

-0.621^a

-0.609^a

-0.639^a

-0.617^a

-0.091^a

-0.641^a

(0.009)

(0.008)

(0.041)

(0.042)

(0.043)

(0.039)

(0.009)

(0.043)

*
gap^*

-0.008

-0.002

0.021

0.015

0.034

0.073

-0.008

-0.015

(0.015)

(0.014)

(0.070)

(0.067)

(0.073)

(0.070)

(0.015)

(0.070)

2nd stage statistics

RMSE

0.210

0.188

1.046

1.095

1.123

1.008

0.210

1.124

adj. R²

0.893

0.896

0.931

0.935

0.932

0.936

0.893

0.931

F

72.41

158.7

150.0

73.06

149.7

1st stage statistics (p-valus)

partial R²

0.633

0.972

0.753

χ² -overidentification

0.0190

0.680

0.970

χ² -endogeneity

0.695

0.623

0.886